Analyst Reiterates Buy on Roche, Maintains CHF 395 Price Target on Underappreciated Long-Term Pipeline Upside

Analyst Justin Smith of Bernstein assigned a Buy rating on Roche Holding AG, retaining the price target of CHF395.00.

Justin Smith has given his Buy rating due to a combination of factors including an improving earnings outlook and multiple underappreciated pipeline catalysts. He highlights that Roche’s late-stage assets in inflammatory bowel disease and Alzheimer’s could drive substantial long-term growth, with category potential far exceeding current consensus expectations, while nearer-term opportunities such as the SERD breast cancer drug may help bridge the gap between the market’s peak sales assumptions and management’s higher aspirations.

Smith also points out that, despite a small downgrade to 2026 EPS, his longer-term earnings forecasts for 2027–2031 are meaningfully higher than consensus and above European peers, reflecting anticipated upside from the pharma franchise that more than offsets weaker diagnostics trends. His bull-bear analysis suggests an attractive skew with substantial upside versus downside to 2035 EBIT, and he maintains a CHF 395 price target, implying a premium valuation that he believes is justified by Roche’s long-term growth profile and currently misunderstood pipeline value.

In another report released on April 24, UBS also maintained a Buy rating on the stock with a CHF384.00 price target.